Chapter 7 Warm-up and Quiz
Which of the following statements regarding segmentation is correct? A. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets. B. As gender roles have changed, gender is no longer a useful form of segmentation. C. The use of demographics to segment markets has declined in recent years. D. The business market is homogenous and is not segmented E. Marketers typically use one variable to segment their markets.
A. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague? A. A segment is attractive if there are substitute products available. B. Carefully consider the degree of competition and ease of entry into the segment. C. If there are powerful buyers in the segment it will drive prices up. D. If a segment is larger than others it should always be targeted. E. Fast growing segments are always attractive.
B. Carefully consider the degree of competition and ease of entry into the segment.
__________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
Behavioral
Which of the following statements about segmentation is true? A. Market segmentation is part of a company's value proposition. B. Buyers within a market segment have different needs, characteristics, and behaviors. C. Different segments might require different marketing strategies or mixes. D. Segmentation identifies individual buyers that can be targeted with a market offering. E. Most companies today mass market and do not segment their markets.
C. Different segments might require different marketing strategies or mixes.
Which of the following statements regarding positioning is correct? A. Establishing a position usually takes a very short amount of time. B. Abruptly changing a position is an effective strategy when consumer needs change. C. Positions must adapt over time to meet changing consumer needs. D. Once a positioning strategy is identified, it is typically very easy to implement. E. Once established, a strong position is never lost.
C. Positions must adapt over time to meet changing consumer needs
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
Lifestyle
What are the three broad targeting strategies used by marketers?
Mass marketing, differentiated marketing, and micromarketing
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent?
Product differentiation
__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
Psychographic
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important product dimensions
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
benefits sought
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
channel
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as __________.
concentrated marketing
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors.
cultural
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________.
it can increase costs
Psychographic segmentation divides buyers into different segments based on __________.
lifestyle and personality
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________.
market targeting
The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market __________.
segmentation
Market __________ evaluates each market segment's attractiveness and selects one or more segments to serve.
targeting
The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as __________.
the same for less
Using a(n) __________ marketing strategy, a firm might decide to ignore market segment differences.
undifferentiated
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________.
value proposition